Two council pension funds eye £300m stake in Anglian Water

Oliver Gill
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Anglian Water owns popular attraction Rutland Water Park (Source: Getty)

Two council pension funds are eyeing up a near-£300m stake in utility giant Anglian Water.

London Pensions Fund Authority and Lancashire County Pension Fund are using a previously established partnership agreement to put in a bid for a 10 per cent stake in one of Britain’s largest water companies, the Sunday Times reported.

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The duo formed the Local Pensions Partnership (LPP) last year in the hope of giving themselves more clout against other institutional investors. LPP has 517,000 members and controls £10bn.

Last month the LPP launched a £1.5bn global infrastructure fund.

The stake is being sold by buyout firm 3i.

Against a backdrop of ultra-low interest rates, utility firms and infrastructure assets have become increasingly popular with financial institutions such as pension funds and insurers. Such investments can provide steady and well-regulated cash-flows, seen as a good fit for paying out member returns.

Ministers have encouraged local authority pension schemes to pool resources enabling them to bid for a raft of Britain’s roads, piping and railway assets.

Read more: Disappointing water supplier switching figures trickle in

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